It is common business practice for event promoters and ticket distributors, as well as airlines and other service for providers, to offer tickets for sale in person at ticket offices, over the phone or via the Internet. When buying tickets online, a purchaser reviews the available inventory and prices of tickets offered for sale, and after deciding what tickets to purchase, places an order via the Internet using well established, online purchasing procedures.
Ticket prices for events are typically established by the promoter or distributor and available seats for specific events are offered for sale at specified prices. Basic supply and demand forces determine what ticket prices the market will bear, with purchasers willing to pay more for tickets that are generally considered to be more desirable based on a variety of attributes. For example, for entertainment events such as sporting events, typically ticket prices of seats for a given event vary based on the physical proximity of the seats to the location of the performers within the venue such that seats close to the field or the stage and offering the best viewing vantage point cost more than seats further away from the field or stage and offering a less desirable viewing vantage point. Certain other variables might also determine the pricing of the seats, such as whether the seats come with in-seat service, parking and other perquisites and amenities. For certain types of events, the price of tickets also often vary depending on the date and time of the showing, with tickets for high demand times priced higher than tickets for low demand times. The provision of certain services, such as airline flights, are also priced based on a combination of attributes associated with the selected seat.
Inherent in the standard ticket pricing model is the fact that ticket prices for a given seat at a specific event, and the price for certain services, once set by the seller, are static, and will not vary regardless of their utility, or actual value that a particular purchaser derives from the event. The static setup of ticket pricing does not allow for a person who gets more use and enjoyment out of attendance at an event based on what happens during the event to pay more than the standard price. Neither does it allow a person who gets less use or enjoyment out of attendance at an event based on what happens during the event to pay less than the standard price. Similarly, as it relates to the provision of certain services such as airline transportation, the buyer pays an agreed upon price regardless of the quality of the service. Alternatively stated, the current pricing method does not allow a seller of tickets, or the provider of services, to charge more for an event or service that delivers a high level of value to a purchaser, nor does it allow a seller to charge less for an event or service that is disappointing to the buyer.